Written by Sumit Roy  |

February 29, 2012

Morning Call: Silver ($37.22) Rally Continues On New 5-Month High, Oil Rebounds As US Economy Grows 3%

Details

A rise in crude oil prices doesn't dissuade traders from buying other commodities and stocks.

IN TODAY'S HEADLINES...

A rebound in crude oil prices is not having much of an impact on other markets, as most commodities and stocks edge higher and trade at or near multimonth highs. But worries that high energy prices could hurt the global economy remain.

In economic news, United States GDP expanded by 3 percent annualized in the fourth quarter of 2011, better than the initial 2.8 percent estimate.

• Precious metals are mostly higher today. Gold was last trading up by $1.07, or 0.06 percent, to $1785.30/oz, while silver gained $0.31, or 0.83 percent, to $37.22 after reaching a five-month high at $37.35 earlier. Platinum rose by $7.75, or 0.45 percent, to $1726.25 and palladium edged down by $1.25, or 0.17 percent, to $721.
  
  "For gold, low interest rates make it less attractive for producers to sell forward and kill the rally," said Ross Norman, director at Sharps Pixley. "The loose monetary policy also creased the specter of inflation down the line so it's gold positive."
  Jewelers Desire Platinum for Asians After Gold Vaults
  
  
• Crude oil is rebounding after two days of losses as bargain hunters enter the market. Brent was last trading up by $0.92, or 0.76 percent, to $122.47/bbl, while WTI added $0.34, or 0.32 percent, to $106.89.
  
  The EIA's Weekly Petroleum Status Report will be released at its normal time today. The less-authoritative API report showed that crude oil inventories rose by 0.5 mmbbl, gasoline inventories fell by 0.9 mmbbl, and distillate inventories fell by 3.3 mmbbl last week.
  Oil Set for Best Monthly Advance Since October on Recovery Signs, Iran
  
  
• Natural gas is edging higher today by $0.04, or 1.47 percent, to $2.57/mmbtu. The latest weather forecasts show little change, with much-warmer-than-normal temperatures forecast for the major consumption regions of the United States.
  The long road ahead for natural gas vehicles
  
  
• Grains are up again today as soybeans hover near a five-month high. Prices were last up by $0.03, or 0.19 percent, to $13.08/bushel, while corn gained $0.02, or 0.31 percent, to $6.56, and wheat rallied by $0.07, or 1.06 percent, to $6.69.
  Corn Shipments From India Seen Missing Forecast on Pests, Rupee Strength
  
  
• Copper prices on Comex were last trading up by $0.02, or 0.51 percent, to $3.93/lb.
  
  "The recent improvement in Chinese manufacturing activity coupled with the selective monetary easing stance of the People's Bank of China may help to spark Chinese buying again and provide the needed catalyst for copper to stage the next leg higher," said analysts at Credit Suisse.
  Copper climbs to two-week high after ECB injection

What to Watch For:

10:30 a.m. EST: Weekly Petroleum Status Report